The Canada-Korea Free Trade Agreement
Posted on December 18, 2020
The agreement will create thousands of jobs and opportunities for Canadians by opening new markets for Canadian exporters and creating jobs and opportunities for Canadians in all provinces and territories. More than 2.78 million Canadians active in the industrial products sector (such as chemicals and plastics, information and communication technologies, aerospace, metals and minerals, medical products, textiles and clothing), agricultural and food products, wines and spirits, fish and seafood, as well as valuable forest wood products, will benefit from increased commercial opportunities and duty-free access to South Korea. The Canada-Korea Free Trade Agreement will help the sector regain competitive access to South Korea. “The Canada-Korea Free Trade Agreement is a central agreement for Canada. South Korea is one of the world`s fastest growing industrialized countries and this agreement is a turning point in Canada`s efforts to establish closer economic ties with the Asia-Pacific region. This agreement and others, as it likes it, is essential if Canada is to maintain a high quality of life for its citizens by creating new sources of export growth and international trade and investment opportunities. The Canadian Services Coalition welcomes the announcement of a free trade agreement between Canada and Korea. This historic agreement, the first between Canada and an Asian country, will provide Canadian service companies with improved access to the $1.300 billion South Korean market. Trade agreements are an important priority for the Canadian service industry, including financial services, engineering and environmental services, professional and consulting services, and IT services.
Canadian service companies welcome this agreement because it will be of great benefit to Canada. After the Canada-Korea Free Trade Agreement comes into force, Canada will grant immediate duty-free access to Korea to 50.7 per cent of agricultural lines. 36.3% of tariffs on agricultural tariffs will be abolished over a five-year period. The two countries began discussing a free trade agreement in 2005 and held 14 rounds of negotiations before the agreement was finalized.   Canada`s trade with South Korea declined by about 1/3 as a result of the conclusion of the Free Trade Agreement between the European Union and South Korea and the free trade agreement between the United States of America and the Republic of Korea.  As part of the Canada-Korea Free Trade Agreement, an SPS committee will allow experts to cooperate and consult with experts on SPS measures to improve cooperation and facilitate trade by discussing issues before they become problems.